Year 2020, Volume 7 , Issue 3, Pages 81 - 87 2020-10-05

A factorial analysis on the built-in risks influencing marginal oil field development in Nigeria

Ayodeji OMOTEHİNSE [1]


Marginal field development in the prolific Niger Delta environment is of strategic importance to the Federal Government of Nigeria’s drive towards aggressive reserve and production capacity enhancement. For successful development of a marginal field, it is imperative to understand the various risks and uncertainties that are inherent in developing the field as the oil industry is exposed to a lot of risk more than most manufacturing industries in the world. This study offers clarification and deep intuition about the insidiousness of these risk factors, discusses their wider implications and gives justification for their economic significance. This study investigates a total of thirty-four (34) risk variables influencing marginal oil field development by using a survey approach involving the use of Kendall’s Coefficient of Concordance (KCC) and Principal Component Analysis (PCA). The Kendall’s Coefficient of Concordance (KCC) analyzed the level of agreement among the 13 Judges who ranked the variables in descending order of importance. The result showed an index of agreement in ranking among the judges as W=0.60. This indicates 60% agreement among the Judges. The Principal Component Analysis (PCA) facilitated by StatistiXL software package was efficient in achieving parsimony in factor reduction from thirty-four variables to mere six factors. The result shows that six principal factors, creatively labelled: Geo-technical Economism, Operational and Economic Leaven, Fiscal Ripple, Bottom Line, Logistics and Oil quality represent the principal risk factors that influence marginal oil field development in Nigeria. This study brings to bear the militating factors that affect operations and profitability of marginal oilfields development in Nigeria.
Factor Reduction, Marginal Field, Oil Production, Parsimony, Risk
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Primary Language en
Subjects Industrial Engineering
Journal Section Research Article
Authors

Orcid: 0000-0002-5036-0800
Author: Ayodeji OMOTEHİNSE (Primary Author)
Institution: University of Benin
Country: Nigeria


Dates

Application Date : July 24, 2020
Acceptance Date : September 29, 2020
Publication Date : October 5, 2020

Bibtex @research article { ijeat773243, journal = {International Journal of Energy Applications and Technologies}, issn = {}, eissn = {2548-060X}, address = {editor.ijeat@gmail.com}, publisher = {İlker ÖRS}, year = {2020}, volume = {7}, pages = {81 - 87}, doi = {10.31593/ijeat.773243}, title = {A factorial analysis on the built-in risks influencing marginal oil field development in Nigeria}, key = {cite}, author = {Omotehi̇nse, Ayodeji} }
APA Omotehi̇nse, A . (2020). A factorial analysis on the built-in risks influencing marginal oil field development in Nigeria . International Journal of Energy Applications and Technologies , 7 (3) , 81-87 . DOI: 10.31593/ijeat.773243
MLA Omotehi̇nse, A . "A factorial analysis on the built-in risks influencing marginal oil field development in Nigeria" . International Journal of Energy Applications and Technologies 7 (2020 ): 81-87 <https://dergipark.org.tr/en/pub/ijeat/issue/57106/773243>
Chicago Omotehi̇nse, A . "A factorial analysis on the built-in risks influencing marginal oil field development in Nigeria". International Journal of Energy Applications and Technologies 7 (2020 ): 81-87
RIS TY - JOUR T1 - A factorial analysis on the built-in risks influencing marginal oil field development in Nigeria AU - Ayodeji Omotehi̇nse Y1 - 2020 PY - 2020 N1 - doi: 10.31593/ijeat.773243 DO - 10.31593/ijeat.773243 T2 - International Journal of Energy Applications and Technologies JF - Journal JO - JOR SP - 81 EP - 87 VL - 7 IS - 3 SN - -2548-060X M3 - doi: 10.31593/ijeat.773243 UR - https://doi.org/10.31593/ijeat.773243 Y2 - 2020 ER -
EndNote %0 International Journal of Energy Applications and Technologies A factorial analysis on the built-in risks influencing marginal oil field development in Nigeria %A Ayodeji Omotehi̇nse %T A factorial analysis on the built-in risks influencing marginal oil field development in Nigeria %D 2020 %J International Journal of Energy Applications and Technologies %P -2548-060X %V 7 %N 3 %R doi: 10.31593/ijeat.773243 %U 10.31593/ijeat.773243
ISNAD Omotehi̇nse, Ayodeji . "A factorial analysis on the built-in risks influencing marginal oil field development in Nigeria". International Journal of Energy Applications and Technologies 7 / 3 (October 2020): 81-87 . https://doi.org/10.31593/ijeat.773243
AMA Omotehi̇nse A . A factorial analysis on the built-in risks influencing marginal oil field development in Nigeria. IJEAT. 2020; 7(3): 81-87.
Vancouver Omotehi̇nse A . A factorial analysis on the built-in risks influencing marginal oil field development in Nigeria. International Journal of Energy Applications and Technologies. 2020; 7(3): 81-87.